US Household Wealth Surges $7.1 Trillion in Q2, Fueled by Stock Rally and Widening Inequality

US household net worth skyrocketed by $7.1 trillion in the second quarter, marking the largest increase since late 2020. Total wealth reached a record $176.3 trillion, driven primarily by a 30% rally in the S&P 500 over five months. This surge, however, has exacerbated wealth inequality, with the top 1% now holding $40 trillion more than the bottom 50% combined.

The wealth-to-GDP ratio climbed to 581%, its highest level since early 2022, underscoring how asset owners are outpacing wage earners. The Federal Reserve's anticipated rate cuts, despite inflation remaining above 3%, are expected to further inflate asset prices, leaving those without investments behind.

Wall Street's windfall contrasts sharply with a struggling labor market, highlighting the uneven distribution of economic gains. The top 10% of Americans continue to dominate wealth accumulation, while the bottom half owns just 2.5% of the nation's net worth.